Legislators propose expanded gambling to help pay for property tax relief
By Linda Kleindienst and Mark Hollis
Tallahassee Bureau
Copyright © 2007, South Florida Sun-Sentinel
Tuesday, May 01, 2007
TALLAHASSEE · An expansion of gambling could help the Legislature break its deadlock over how to provide property tax relief.
A House council on Monday overwhelmingly endorsed a plan to let nine racetracks and jai alai frontons in the most populated areas of the state, including South Florida, offer video lottery games, setting the measure up for a vote by the full House.
The selling point: the plan could help reduce school property taxes by $1 billion.
Last week, the Senate passed its own version that would allow the state's 26 existing pari-mutuel venues to install the bingo-like machines, defined as "electronic games of chance" that can include traditional card games and poker.
House Rules Chairman David Rivera, R-Miami, who wrote the House measure, refused to confirm that gaming had become a factor in the high-stakes tax debate, but he said, "Every issue in the final days is related to every other issue."
It was the only outward sign there might be some movement on the marquee issue of this year's session: property tax relief for home and business owners.
Although opposed to expanded gambling, House Speaker Marco Rubio, R-West Miami, said he would be flexible in trying to reach agreement with the Senate on how to slash property taxes.
"The methods are negotiable," Rubio said. "Everybody knows that we have to do this. What is not negotiable is the (House) goal of meaningful tax reform."
Senate President Ken Pruitt, R-Port St. Lucie, said that with negotiations on a $70 billion-plus state budget now successfully concluded, his schedule is cleared to give full attention to the property tax issue.
"Be optimistic, there's hope," he said of reaching a tax agreement with the House by Friday's scheduled adjournment.
Once vehemently opposed to any expansion of gambling in the state, the Legislature this year appears to be softening. Video lottery games, proposed periodically for at least two decades, have more support than ever. And lawmakers appear poised to relax state regulation of Broward County's casinos, allowing them to install more Las Vegas-style slot machines and operate longer hours.
The change of heart could be from the prospect of additional cash for public schools in a tight budget year, a more accepting governor and hefty campaign contributions by gambling interests.
As of April 23, Broward's slot machines had generated $30.4 million for the state's public schools. And it's estimated by legislative staff that the new video-lottery terminals could boost revenue for education by $1 billion to $2 billion yearly, depending how many pari-mutuels are allowed to install them and how many machines are involved.
In the 2006 election cycle, the state's gaming business funneled almost $1.2 million to the state's political parties, nearly $653,000 to the Republican Party of Florida and $529,000 to the Democrats.
And only days before this year's legislative session began, three of Broward's four pari-mutuels that now operate slots wrote large checks. Mardi Gras Race Track and Gaming Center in Hollywood handed $50,000 to the state Republican Party and $20,000 to the Democrats. Pompano Park Harness Track gave $40,000 to the Republicans. Gulfstream Park wrote checks for $31,000 to the Republicans and $10,000 to the Democrats.
Ben Wilcox, director of Common Cause of Florida, a nonprofit government watchdog, said the contributions were key to greasing the skids for expanded gaming.
"That's how business is conducted here in Florida," he said.
But Dan Adkins, vice president of Mardi Gras, disputed the connection.
"We've always made political contributions, but it didn't do any good," said Adkins, who led the drive to get approval from voters statewide and then in Broward to install slot machines in the county's four pari-mutuels. "We had to take it to the people."
Staff Researcher Jeremy Milarsky contributed to this report.
Linda Kleindienst can be reached at lkleindienst@sun-sentinel.com or 850-224-6214.
Slots, Marlins stadium in tax-bill mix
By Mary Ellen Klas, Breanne Gilpatrick and Yudy Pineiro
Staff Writers
Copyright © 2007, Miami Herald
Tuesday, May 01, 2007
The Florida House of Representatives, which has consistently killed efforts to expand gambling in the state, suddenly resurrected a committee Monday for just one vote: to allow slot machines at 10 racetracks and jai-alai frontons, including four in Miami-Dade County.
The stated rationale for the change of mind: Tax revenue from gambling would help cut property taxes.
The other, less public, reason: a stadium for the Florida Marlins.
The deal would work like this: The House hates gambling but wants to give a $60 million subsidy to the Marlins to build a retractable-roof stadium. The Senate doesn't care for the Marlins stadium but has already voted to allow parimutuels throughout the state to put in slot machines.
So each chamber would hold its nose to pass a bill it dislikes to get something it badly wants.
House leaders denied Monday there is any direct link between the gambling bill and Marlins measure, but the sponsors are hopeful that since the gambling money would be steered to property tax cuts, both will survive.
''It appears to me there is a desire on the part of leaders of both chambers to give each issue a vote,'' said Sen. Steve Geller, the Senate Democratic Leader and sponsor of the slots bill. He added that the extra revenue from gaming would make the cost of the Marlins bill -- $2 million a year for 30 years -- ``easier to stomach.''
The House sponsor, Rep. David Rivera, a Miami Republican, said he would be ''appreciative'' if his push to bring the gambling bill to a vote provokes a Senate vote on the Marlins.
And Senate Republican Leader Dan Webster, a Winter Garden Republican, who last week vowed that the Marlins bill won't come to a vote in his chamber, on Monday gave a noncommittal ``we'll see.''
CLASS II SLOTS
The proposal would allow Calder Race Track, Flagler Dog Track, Miami Jai Alai, Hialeah Race Course and six other parimutuels around the state to offer slot machines -- known in Tallahassee parlance as ''video lottery terminals'' -- without getting voter approval. Hialeah would first have to reapply for its racing license.
The machines, also called Class II or bingo-style terminals, are identical to the ones now used by the Seminole and Miccosukee Indians at their casinos. They look like Vegas-style slots but produce lower payouts because players in essence bet against one another and not the house.
The House Environment and Natural Resources Council approved the bill 13-1 in an extrordinary late-session meeting, convened specially to pass the bill before a friendly committee.
The estimated $1 billion that would be raised from those nine facilites would be sent to school districts across the state, which would then have to reduce property taxes levied to pay for schools.
If the plan is approved, taxpayers could see savings of about 10 to 20 percent on the schools portion of their property tax bill.
''It's a tax cut,'' said the council's chairman, Rep. Stan Mayfield, a Vero Beach Republican.
Gov. Charlie Crist said Monday he'd been told of the House proposal but is withholding judgment until he sees the final version of the bill.
''I want the Legislature to finish its job,'' he said. ''Then our lawyers will review the bill and we'll take a position.''
DIFFERENT OBJECTIVES
The deal is loaded with political curveballs. House Speaker Marco Rubio said he personally will vote against any bill to expand gambling, but added he won't stand in the way of letting it pass through his chamber.
Senate President Ken Pruitt is privately pushing for the passage of the slot machines bill and has said he won't stand in the way of a bill to assist the Marlins.
And Rivera, who is one of Rubio's closest lieutenants, personally supports gambling and is being courted by Miami-Dade gambling interests, who want to conduct a voter referendum next year to bring Vegas-style slot machines to county parimutuels next year.
But the conservative House is hostile territory for gambling measures, and there's no guarantee the slots bill will pass.
A more routine bill -- to loosen slots regulations at Broward's parimutuels by expanding the number and hours of operations of slot machines and allowing them to put ATMs on their property -- barely passed on a 61-52 vote on Monday.
Rivera said the vote sent a signal that his bill will have trouble. ''It certainly has challenges,'' he said.
There is no assurance the Senate will agree with the House proposal. The Senate version would allow all 25 parimutuels in the state to expand to Class II slots and generate an estimated $1.9 billion in tax revenue a year.
The House plan limits the new slots games to parimutuels in counties with populations of over 800,000, or within 40 miles of an existing casino operated by an Indian tribe. The bill prohibits Broward County parimutuels from offering the machines, unless they give up the Vegas-style Class III gaming devices they now use.
Some legislators complained Monday that the issue was rushed through.
''I just found out about this,'' said Rep. Rich Glorioso, a Plant City Republican. ``I don't like this bill, but I'm going to let it go to the floor because I believe anything this large and of this magnitude needs to be [decided] by the entire chamber.''
House bill would expand gambling, lower property taxes
By Brendan Farrington
Associated Press Writer
Copyright © 2007 Bradenton Herald
Tuesday, May 01, 2007
TALLAHASSEE, Fla. --Video gambling machines similar to slot machines could be installed at several dog and horse tracks around Florida, with the state's share of profits going toward a reduction in property taxes, under a bill approved Monday by a House council.
Called video lottery terminals and based on the game of bingo, the machines could raise an estimated $1 billion for the state, and would be used to reduce property taxes by lowering the amount local governments have to pay toward school costs.
The machines are the same type now used in Seminole and Miccosukee Indian casinos around Florida, but not the Las Vegas-style slots that voters allowed into Broward County pari-mutuel facilities.
The proposal comes during the final week of the annual 60-day legislative session as lawmakers try to find a way to lower property taxes. It was tacked onto a bill (HB 1551) related to lottery patents. The House Environment & Natural Resources Council approved the measure 12-2 even though it barely had time to review the 26-page amendment filed by Rep. Denise Grimsley, R-Sebring, just before the meeting began.
Rep. Rich Glorioso said he didn't like the bill, but he voted for it because he wanted to give the entire House a chance to debate it.
"I believe any (decision) this large and of this magnitude needs to be made by the entire floor," said Glorioso, R-Plant City.
Bill sponsor David Rivera, R-Miami, said he supported the idea because it would help pari-mutuels that were at a competitive disadvantage with Indian casinos while also helping to lower property taxes.
It would allow the machines in pari-mutuel facilities within 40 miles of existing Indian casinos or in counties with more than 800,000 people that also have an Indian casino. Unlike Las Vegas-style slots, in which gamblers bet against the machine, the video lottery machines are electronically tied into each other and gamblers are betting against each other to win jackpots.
Gov. Charlie Crist said he would have to review the bill before deciding whether he would support it.
A similar bill (SB 2434) passed the Senate on a 34-5 vote last week. It would allow the machines in all licensed pari-mutuels, which would raise an estimated $2 billion. The first $1 billion raised would go toward raising teacher salaries, with anything above that amount going to lower the local share of school spending.
A companion House bill (HB 1447), though, is stalled.
Also Monday, the full House approved a bill that would increase the number of slot machines Broward County pari-mutuels can install from 1,500 to 2,000. It also allows slot rooms to install ATMs and expand operating hours.
Gambling opponents said the Legislature shouldn't rush to loosen rules it put in place just more than a year ago.
"Just because we've got a little gambling and we're a user of this substance, doesn't mean we should OD on it," said Rep. Trey Traviesa, R-Tampa.
But bill sponsor Jack Seiler, D-Wilton Manors, said unregulated gambling is already taking place in Indian casinos and on gambling boats that leave Florida ports and the state sees no money from it.
"There is gambling in Florida. It's like Casablanca. It's happening here, guys. It's in front of our eyes," Seiler said. "This is a vote as to whether or not we're going to take some revenues from the gambling in Florida and I submit that the state needs these revenues."
Video lottery offered as tax relief
By James Miller
Staff Writer
james.miller@news-jrnl.com
Copyright © 2007 Daytona Beach News-Journal
Tuesday, May 01, 2007
TALLAHASSEE -- With five days left to break a deadlock on the state's hottest issue, House lawmakers Monday offered a new way to cut property taxes -- gamble.
In a surprise vote on a last-minute amendment, a House council moved to legalize slot machine-style video lottery terminals in some counties and tax them to cut local education taxes.
The House plan wouldn't directly affect Volusia or Flagler county. It would allow coin-operated video lottery games at horse tracks, dog tracks and jai alai frontons in counties with populations greater than 800,000 or within 40 miles of an Indian gaming facility.
House Speaker Marco Rubio said the proposal, which could slice $1 billion from state-mandated local school taxes, was not part of "any plan or deal" to resolve a logjam between the Florida House and Senate over cutting taxes. Nor does he support it.
"I remain convinced that the expansion of gambling in our state is a bad idea," said Rubio, a West Miami Republican.
But some leaders in the Senate -- which passed a similar bill last week -- were intrigued.
"If they want to bring some new revenues in, as long as it's not a new tax or a new fee, we're OK looking at it," said Indialantic Sen. Mike Haridopolos, the Senate's chief tax negotiator.
The Senate has balked at a House Republican proposal to let voters get rid of homestead property taxes and raise the sales tax by 2 1/2 cents per dollar to offset some lost government revenue.
House leaders have said they're flexible about how to cut taxes as long as the cuts are deep enough. But Senate leaders say the cuts proposed, so far, by the House would cripple local governments' ability to provide key services.
In 2006-07, state-mandated property taxes for local schools totaled $7.36 billion -- about 30 percent of an average tax bill.
The council proposal drew fire from social conservative groups and could face a tough slog in the House, which barely passed a much-narrower gambling-related bill Monday after a rough debate. It poses problems even for supportive senators.
It includes only nine of 26 pari-mutuel facilities statewide. The Senate bill -- which would designate revenue for education, but not necessarily local property tax reductions -- includes all.
That could be a problem, said Sen. Jim King, R-Jacksonville, long a supporter of allowing video lottery terminals.
"I don't know if that will fly over here," he said.
Panel vote takes step to legalize gambling
By Sean Lavin
sean.lavin@jacksonville.com
Staff Writer
Copyright © 2007 The Florida Times-Union
Tuesday, May 01, 2007
TALLAHASSEE - The odds of bringing a new form of legalized gambling to Jacksonville increased Monday when a House council voted to allow up to 1,000 video gaming terminals in some of the state's pari-mutuel dog and horse racing facilities.
Last week, the Senate approved a similar bill easing restrictions on video games of chance, like bingo, with the jackpot accumulating as more players try their luck.
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The bipartisan support coming from both chambers surprised Sen. Jim King, R-Jacksonville, who's been a longtime supporter of the devices because of the money they could generate for the state.
"I was amazed," King said. "In a matter of moments, the bill was up and the bill was out with, I think, eight or nine negative votes. I've never seen anything like it."
King said the tight budget year and property tax woes plaguing Floridians have given the lucrative gaming devices a new chance to spread across the state.
"It's almost like a perfect storm," King said. "When you look at a couple of billion dollars that you and your counties are going to get, and most of the money comes from tourists and people who are going to gamble anyway, why not?"
According to a House analysis, half of the proceeds collected from the video games would fund state education. The influx of revenue could ease the local burden of funding schools under the House proposal.
Despite the increase in cash, Rep. Mark Mahon, R-Jacksonville, is still not convinced that adding to Florida's gambling industry is right.
"I don't think that's something that bodes well with me philosophically and my community," he said. Mahon said he would be "stunned" if Jacksonville residents support the move.
Only nine of the state's 26 pari-mutuel facilities would be eligible to provide the video terminals under the House plan. And counties would need a population of at least 800,000, or be located within 40 miles of an Indian gaming facility, to be eligible.
The Jacksonville Kennel Club would be eligible under the House plan.
However, under the Senate plan, any pari-mutuel site would be eligible - thus adding the Orange Park Kennel Club and the Poker Room at St. Johns to the mix.
Patrons would need to be at least 21 to gamble at the video machines at the eligible pari-mutuel facilities.
The video terminals could be in operation for no more than 16 hours per day. The devices could be in use even when races are not taking place in the facilities they occupy. Local officials, however, would have the option of voting to extend the hours of operation under the House proposal.
The House must approve the measure in enough time for its changes to be reconciled by the Senate by the scheduled end of the legislative session Friday by midnight.
Jacksonville Mayor John Peyton and Sheriff John Rutherford said they had not yet reviewed the plan and declined to comment.
Rutherford said as recently as last month that his office has been enforcing laws against video games of chance, which had been popping up in the city illegally, and will continue to do so.